Bitcoin’s Wild Ride (Panama To Join El Salvador and Paraguay in Bitcoin Adoption?) ECB Matching Fed’s Monetary Stimulypto

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by confoundedinterest17

The returns from Bitcoin this year are starting to slide below traditional assets as cryptocurrencies struggle to claw back ground lost in a rout in May. Bitcoin’s latest slump has the digital currency now clinging to a 14% gain for the year, trailing commodities as well as some European and Asian share gauges. Bitcoin has plunged from a peak of almost $65,000 in mid-April, exacerbated by billionaire Elon Musk’s public rebuke of the sector’s energy usage as well as renewed Chinese regulatory oversight.

Not just Bitcoin.

Today, we see that Bloomberg Galaxy (their crypto index) is down 7%.

Now we are hearing that Panama may join El Salvador and Paraguay in adopt Bitcoin as a currency.

See also  Bitcoin/Ethereum/Dow Slide As Gold Rebounds (Fun Times As $3.3 Trillion Options Expire)

Of course, with the European Central Bank (ECB) matching The Federal Reserve’s massive monetary stimulus push, more and more nations may seek protection against currency devaluation caused by The Fed and ECB.

Europe is not seeing the inflation spike (particularly in core inflation) that the US is seeing.

Now we have newly-minted multi-millionaire Janet Yellen, the US Treasury Secretary, telling us that President Joe Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates.

“If we ended up with a slightly higher interest rate environment it would actually be a plus for society’s point of view and the Fed’s point of view,” Yellen said Sunday in an interview with Bloomberg News during her return from the Group of Seven finance ministers’ meeting in London.

The debate around inflation has intensified in recent months, between those like Yellen who argue that current price increases are being driven by transitory anomalies created by the pandemic — such as supply-chain bottlenecks and a surge in spending as economies reopen — and critics who say trillions in government aid could fuel a lasting spike in costs.

Yes, cryptos are having a wild ride as is the US Dollar.

See also  38% of the Bitcoin circulating supply is sitting in loss. This is the highest level since April 2020. The Summer '21 crash peaked at around 34% of supply in loss.

Janet and Christine’s Wild Ride!

 

 

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